‘Tis the Season to Spend Wisely
‘Tis the Season to Spend Wisely
‘Tis the Season to Spend Wisely
The holidays can be a festive time of year, but you don’t want the debt of holiday’s past to haunt you into the new year. Here is my holiday spending tip list - be sure to check it twice.
Create a Budget
Before you start your holiday shopping, develop a realistic budget. Be as detailed as possible. Look at past banking and credit card statements, as well as receipts from last year, to gauge your holiday spending.
Develop a Gift Spending Plan
Compile a list of people you want to give gifts to, and how much you plan to spend on each. Make sure this spending plan fits in with your holiday budget. It is best to spend an amount you can afford, instead of an amount you feel you are “supposed to spend”.
Suggest a Gift Arrangement
When giving gifts within a group, consider trying a new arrangement, such as drawing names so that each participant is assigned one other person to buy a gift for. Be sure to set a spending limit.
Consider Gift Alternatives
Give a framed photograph, home-baked cookies, or a gift of an arranged event or service can be a very personal gift at a lower price. Perhaps give a coupon for a free night of babysitting to someone with young children, or a voucher for a home-cooked meal for someone who would especially appreciate that.
Be a Savvy Shopper
The holiday season is full of discounts and sales promotions. Shop around and be mindful that not all discounts reflect real savings. Pursue any discounted items strategically – purchase only the items you planned to buy, and above all, don’t buy something just because of how cheap it appears to be.
Protect Your Identity
Beware of fraudsters or suspicious online offers. Do not enter your credit card number unless you are certain the website is trustworthy. Keep receipts and billing statements to check for unauthorized charges. Shred documents that contain personal information.
Plan for Next Year
Start saving a small amount of money every paycheck or every month towards next year’s holiday spending. Some small banks and many credit unions offer automated transfers to “Christmas Club” accounts with this purpose in mind. Another approach is to set up a direct deposit sending a fixed amount from each paycheck to a savings account. Over an entire year, your savings will really add up!
Durham Tech Community, for more personal finance advice or tips, email me at chapmanl@durhamtech.edu
Larry is the Financial Coach at Durham Tech, providing individual coaching services and information to the students and employees of the Durham Tech community.